Does artificial intelligence need its own class of insurance, or is it quietly reshaping risks the market already underwrites? That question was at the centre of a recent webinar hosted by KYND, following the publication of its The Wild West of AI Risk white paper.

On 1 September, KYND brought together senior cyber insurance leaders from around the world to explore how AI is changing the industry’s approach to liability, claims, underwriting and aggregation.

The discussion showed limited support for a standalone AI insurance product for now. Panellists said AI exposure is already covered within existing lines, particularly cyber and technology errors and omissions. One panellist described it as the next stage of technology risk rather than a separate category. The cause of a loss remains important in determining which policy responds. For example, if an AI-powered hiring tool discriminates against candidates, the resulting exposure remains an employment and legal issue, with the business liable as it would be for a human decision. Companies developing AI themselves may face a different set of exposures and could require more dedicated cover.

Human involvement was another recurring theme in the discussion around AI liability. The panel highlighted that someone still selects the technology, creates the prompts and determines how much autonomy an AI system is given. The cases discussed during the webinar were linked to inadequate guardrails or systems being used outside their intended limits, rather than software operating entirely independently.

The panel suggested organisations should treat AI agents in a similar way to employees, with clear rules, controlled access and accountability for their actions.

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